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Alibaba's Jack Ma increasingly goes after the same market as Amazon. (Mark Lennihan / AP)

China's massive churn of raw data and determination to own the technologies of the future put it in a head-to-head race with the United States for dominance in artificial intelligence, according to a new paper co-authored by Kai-fu Lee, China's most prominent VC and the former head of Google China.

Why it matters: AI is widely expected to be the next broad technological advance that revolutionizes global business and whole economies. If Lee is right, China's advantages give it a strong chance to win the economic and geopolitical muscle that will accrue to whoever grabs the lead in AI research and applications. "A very good scientist with a ton of data will beat a super scientist with a small amount of data," Lee wrote, along with Eurasiagroup's Paul Triolo. "This is not always well understood, but it is critical to determining which companies–and countries–will take the global lead in AI development."

Here are key takeaways from the paper:

  • China's No. 1 advantage is its huge data sets and flexibility to use them in AI applications: Chinese use phones to pay for goods 50X more than Americans; they use them for food delivery 10X more than the US; and shared bicycles 300X more. All of that churns out data. "This single advantage will be insurmountable by other countries," the paper says.
  • Another advantage: China puts up few bureaucratic roadblocks, such as local and federal governments that sometimes embroil tech issues in "endless debates," and labor attempting to delay projects such as autonomous trucks.
  • Chinese self-driving tech is two years behind the US, but its companies will later at least co-lead in autonomous vehicles, in addition to optics and "Internet AI," business built around the amassing of data.
  • Beijing will become a co-leader with Silicon Valley as an AI innovation center.
  • China's Alibaba will hold its own against Amazon, and Tencent will "lead Facebook." Baidu will continue to lag Google in AI.

Go deeper

Cuomo faces fresh misconduct allegations from former aides

New York Gov. Andrew Cuomo during a February press conference in New York City. Photo: Seth Wenig/Pool/AFP via Getty Images

The office of New York Gov. Andrew Cuomo (D) was on Saturday facing fresh accusations of misconduct against his staff, including further allegations of inappropriate behavior against two more women. His office denies the claims.

Driving the news: The Washington Post reported Cuomo allegedly embraced an aide when he led the U.S. Department of Housing and Urban Development and that two male staffers who worked for him in the governor's office accused him of routinely berating them "with explicit language."

In photos: Protesters rally for George Floyd ahead of Derek Chauvin's trial

Chaz Neal, a Redwing community activist, outside the Minnesota Governor's residence during a protest in support of George Floyd in St.Paul, Minnesota, on March 6. Photo: Kerem Yucel/AFP via Getty Images

Dozens of protesters were rallying outside the Minnesota governor's mansion in St Paul Saturday, urging justice for George Floyd ahead of former Minneapolis police officer Derek Chauvin's trial over the 46-year-old's death.

The big picture: Chauvin faces charges for second-degree murder and manslaughter over Floyd's death last May, which ignited massive nationwide and global protests against racism and for police reform. His trial is due to start this Monday, with jury selection procedures.

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